This is the second part of a 3 part series on finding a Realtor or real estate professional. This article takes you through the steps to narrowing down your list through use of the Internet as your primary search tool. Part 1 of this series examines what you should do to reduce your selections with part 3 outlining the art of negotiating with a Realtor before you hire.

OK, so you are selling your home and you've narrowed down your choices of Realtors to 3, maybe 4, individuals that you think meet your criteria (See Article 1 of this series, Narrowing Your Options). So, now what? Do you honestly think that all Realtors are the same?

The answer is, of course, no! There are a variety of factors that should impact your decision as to which Realtor you will select from your narrow list to represent you. Even then, there is no guarantee that you will be selecting the best person. Is your friend Joe the best option? Maybe not, but how can you ever determine that?

Much like a company interviewing a potential employee, you have to approach the selection process with an open mind and with a view to maximizing your return. The big difference between you and a company is that the Realtor may be paid directly out of your own disposable income (depending on your local tax structure) unless your move is being paid for through a relocation package.

Because of the fact that Realtor commissions can constitute the largest single cost factor in your selling decision, it is vital that you make the right selection so that you get the best value possible. You can only do that by asking the right questions and looking for the right answers.

What is the Realtors experience in this market and in your area?
This should be the first question you ask of potential Realtors. Experience in a given area is vital to understanding the level of expertise that a Realtor has.

Realtors that are well versed in a local area or market will often understand how to price a home in your area. They will also have access to contacts interested in your area and will be known by other Realtors for having experience and inventory in your market.

Does the Realtor give out references?
Past clients can be an excellent source of information. Ask potential Realtors to get you a list of their last 2 or 3 clients and, if possible, a few clients that they serviced in your neighborhood. Ask the Realtor if it is alright to contact these people.

Once you have been given the OK, then give a few of these people a call and ask them whether they were happy with the service and whether they felt that the service they received was good. You can also ask them what they would have changed in their relationship with that Realtor.

Don't expect to receive information that is severely negative, however, there can be different levels of approval. If you get the opportunity to talk to past clients keep an open ear for these differences.

How will the Realtor market your home?
Though it can be confusing, it is vital that you understand how a Realtor intends to market your home. Too often, people select a Realtor and then complain that not enough is being done to sell their property. The problem is not that the Realtor is not doing work… it is that the parties did not communicate what was going to be done or what was expected to be done.

There are a multitude of ways to market homes, some of which are effective and some of which aren't. When you are narrowing down your choice in a Realtor it is important that you have them explain their intentions AND also explain what they will not do. Keep good notes of your conversations so that you can compare the answers between the Realtors that you are interviewing.

Will the Realtor do open houses and how many?
There are a number of people who are not interested in having an open house. To those people, you don't have to worry about this section. However, this is one of the cheapest ways to market your home and, though some Realtors refuse to do them, will help deliver the message that your house is on the market. Certainly, a number of people being through your home is difficult and can be somewhat risky. However, it is done by many Realtors for one reason… it does sell homes.

You must address this issue with a potential Realtor. Not only should you discuss it you should come to some level of agreement as to whether and how they will be conducted (by appointment, with identification, etc.), how often and when they will be conducted.

What is the Realtor's position on pricing of your home?
Let's get to the nitty-gritty! How much! That's what we all want to hear isn't it? The problem with this question is that it can lead to false hopes and to you getting the answer that you wanted not the one that the market will determine. There are two different numbers that you should be aware of: the list/sale price and the actual appraisal value of your home.

When you sell your home there is a very important number that the buyer or the financier of the Buyer will need to know: the appraisal value. Where the buyer will be placing a mortgage on your home their financial institution will generally require an independent 3rd party evaluation of your property. This is the appraisal.

If an appraisal comes under the sale price of a home it is very possible that your deal will have to be renegotiated (check with a local legal expert to find out about your area) because most contracts are structured subject to final financial approval. Why is this important when you are interviewing a Realtor?

The answer is simple; when you interview a number of Realtors find out what they expect to list your home for, what the potential sale price is and when they would expect to institute price decreases if your house isn't sold.

The next issue may be whether your home is underpriced at the list price. We've all heard of homes selling quickly (sometimes in hours). Though not always, this is sometimes the result of a list price that is too low. The result is that you lose out on potential revenue that could have been obtained.

Though there is no way to completely protect yourself from either situation, there is one major precaution that you can take. Simply ask the Realtors you are choosing from to provide you with the backup information that leads them to their conclusions on pricing. Without this backup information you may end up being told what you want to hear and not what you need to hear!

Can/will the Realtor be able to double-end a deal?
When a buyer walks into your home without a Realtor, the Realtor you have obtains what are called "threshold rights". These rights mean that your Realtor is entitled to a portion, if not all, of the commission generated for the Buyers representative.

In other occasions it is your own Realtor that has a buyer already lined up for your home and who are interested in presenting an offer. In either case, this is what is called "dual agency." In many jurisdictions, the Realtor is allowed to act for both parties. The question is whether you want this or not!

If you are in a jurisdiction that allows dual agency, you have to ask yourself whether this is a problem or an opportunity. On the positive side it can help to complete a deal faster and more efficiently. Also, you may be able to negotiate a lower overall commission at the start if there is only your Realtor involved.

On the negative side there are many potential pitfalls. What if there is a conflict between you and the Buyers? Can the Realtor really represent 2 clients on the same deal as well as he could service just 1?

These are just a few of the questions that you should be asking. The point here is not to provide you with an exhaustive list of questions that you can ask: it is intended to be a starting point and to illustrate to you that hiring a Realtor is absolutely no different than dealing with any other service. The key is that you are in control and that you should ask these questions before you make your decision on which Realtor to hire.

Ron Thibeault is a retired real estate lawyer and contributing Editor to ThinkRelo.com. His extensive experience in real estate law gives him valuable insight into the needs of clients, realtors and all other players in real estate transactions.